More Pain Ahead for Ailing Nokia

By

Gustav Sandstrom

Jun 14, 2012 12:36 pm GMT

Poor Nokia. The ailing Finnish handset maker seems to lurch from one crisis to the next.

Today it announced a massive management shake-up and job cutting plan in yet another effort to claw back lost profits in its struggle against Asian and American rivals. But analysts doubt the measures will be anything like enough to turn around the company’s fortunes.

In February 2011, Nokia’s Chief Executive Stephen Elop, in a notorious memo to staff, compared his company to a man standing on a burning oil platform, calling for drastic action to transform the business. After more than a year of intense restructuring efforts and a number of downgraded earnings outlooks, investors might have hoped the mobile phone maker would be a step closer to steadying its course.